All posts tagged Five Wise Men

Germany’s new demographics report last Wednesday doesn’t leave much room for optimism. Not only will Germany’s population shrink by up to 21% in the coming 50 years, but thanks to higher life expectancy and a persistently low birth rate, every third person living in the country will be 65 or older in 2060.

In view of the challenges this presents for public finances, far-reaching reforms are needed for the country, economists keep repeating.

Germany has one of the lowest birth rates and the highest over-60 population in Europe, and is heading towards a dramatic rise in debt if it doesn’t act, they say.

Yet, as in many other European countries, there is strong resistance to the prospect of working longer. In 2007, the German parliament raised the retirement age from 65 to 67, with the hope that keeping people in jobs longer would ease the burden on the pension fund.

At the time, the decision was criticized by trade unions and opposition politicians who argued it would lead to higher unemployment and increased old-age poverty.

Other countries have been more vehement in their resistance to change.